Singtel

Singtel: (S$4.23) AIS/Airtel acquisitions mildly accretive, exiting after a good run-up*-MKE has downgraded Singtel to Hold from Buy as valuations appear fairly valued after its 15% run-up ytd and against its revised TP of $4.41 (previously $4.69). -With the proposed $2.47b stake acquisitions of Intouch (21%) and Bharti Telecom (7.39%), focus could switch to its cash flows, which is short term negative, and could result in possible cut in forecast dividend rate. That said, the deal is marginally accretive.-Market Insight is also taking profit with a gain of 22.9% (including dividends) since our entry on 15 Jan '16, and exits its position from the Yield portfolio.